GLOBAL MARKETS – Asian Stock Markets Weaken Amid Ongoing Retreat From Chinese Property Sector
September 11, 2023
The Asian Stock markets have exhausted on Monday as the Chinese investors sold off the shares within property developers and remained unconvinced by the efforts of the authorities to rescue activity within the real estate market.
MSCI’s most comprehensive index of Asia Pacific shares in the exterior of Japan was low by 0.3% after the American stocks concluded the last session with smaller gains.
Australian shares had reversed the previous losses to be up 0.12%, and the Nikkei stock index of Japan slid 0.19%.
The Hang Seng Index in Japan was down by 1.4% as investors withdrew from the troubled property sector in China.
The Hang Seng Property Index, the size of Hong Kong’s topmost developers, dropped almost 4%, while the white the mainland property index was down by 3.24%.
“We need the property market to stabilize first in order for any meaningful kind of economic rebound to happen in China,”
said Invesco’s Asia Pacific market strategist, David Chao.
“We are not calling for a property rebound but we want to see some stability.”
“We are seeing investment down in the mid to high single digit level year on year, there is still softness in those tier 2 and 3 cities which is why we have seen a slew of measures in those areas. Those should put a floor under the property market some time soon.”
In the recent weeks, the authorities of China, including the housing ministry, the financial regulator and the housing ministry, have given out a series of steps like easy loaning rules, to support the debt-wrapped property sector, and there are certain expectations for further efforts to revive in the major cities like Shanghai, Beijing, and Shenzhen.
The blue-chip CSI300 Index of China was also up by 0.37%.
“In the United States, the Consumer Price Index (CPI) for August, due out on Wednesday, is expected to rise 0.6% month-on-month for August, which would take the year on year rate to 3.6%,”
as per a Wells Fargo research note.
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